Avino Reports Results of San Gonzalo Bulk Sample
July 11 2011 - 8:00AM
Marketwired
Avino Silver & Gold Mines Ltd. (TSX VENTURE: ASM)(OTCBB:
ASGMF)(BERLIN: GV6)(FRANKFURT: GV6) is pleased to report results of
the 10,000 tonne bulk sample program at the San Gonzalo deposit
following a comprehensive review of the data and discussions with
Wardrop, A Tetra Tech Company. The bulk sample program was
completed during the first quarter of 2011 and a contract for the
sale of concentrate was completed in the June 2011.
The results are based on the metallurgical balance provided
below:
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Contents Recovery
Weight Assay (g/t) Contents (kg) (oz's) (%)
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Tonnes Au Ag Au Ag Au Ag Au Ag
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Feed 10,519(i) 0.9 261 9.35 2,746.75 300.9 88,311.7 100 100
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Concentrate 232 23.8(i) 8,998(i) 5.52 2,087.53 177.5 67,116.9 59 76
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Tail 10,287 0.4 64 3.83 659.22 123.4 21,194.8 41 24
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(i) These figures have been reconciled to the weighed feed
tonnage and the final concentrate assays of the paid shipment. They
also have been rounded for clarity.
The overall bulk sample feed grade was 261g/t Ag and 0.9g/t Au.
Silver and gold recoveries were 76% and 59% respectively and 232
dry tonnes of flotation concentrate were produced of which 188
tonnes were sold for net revenues of US$1.83 million. If the entire
production were sold under the same contract terms, the net revenue
would have been US$2.26 million.
Operating costs relating to the bulk sample program during the
first quarter of 2011 were US$567,045 or US$7.62 per ounce silver
equivalent.Included in these costs are development mining costs for
the raises and stopes. Cost per tonne produced were $53.91 and
revenue on 188 tonnes of concentrate sold of US $1.83 million
resulted in a profit of US $120 per tonne produced. (The contract
price per ounce of silver and gold were US$36.75 and US$1,511.31
respectively) A balance of 44 tonnes of concentrate remains in
inventory.Discussions for the sale of the balance of the
concentrate with various trading companies are on-going and a
decision is expected to be made at the end of July.
The net proceeds of the bulk sample program yielded a
significant profit of $1.3 million based on concentrate sold to
date. This is a positive result and demonstrates the viability of
the San Gonzalo Project. On the basis of this result, Avino is
proceeding with their mine plan to develop the 3rd, 4th and 5th
levels and to provide mill feed at the rate of 250tpd on a
sustained basis In the meantime, Avino is in discussions with
Wardrop, A Tetra Tech Company, on a possible scoping study with the
aim of improving and optimizing the project. There are many
opportunities available such as the expansion of daily throughput,
improving metallurgical recoveries, and areas where operating costs
can be reduced.
The Company continues to acquire and refurbish its mining
equipment which is resulting in an efficient mining process.
Significant recent mining equipment acquisitions and refurbishments
include a loader, dozer, 5 yd scoop and the refurbishing of a
single boom jumbo respectively. The Company is also in the process
of acquiring an underground air compressor diamond drill and
constructing a 2km power line to provide for efficient grid power
to the San Gonzalo Mine. A budget of these key items is currently
being prepared for review and approval.
The area where the bulk sample was mined was relatively close to
the surface therefore the material processed was more oxidized than
the main San Gonzales deposit. As the Company continues to develop
the San Gonzalez mine to levels 3,4, and 5, it is anticipated that
recovery rates and metal grades will be higher as indicated by
previous drill results and metallurgical testing.
The silver produced represents 90% of precious metal recovered
making Avino one of purest silver producers in the industry. With
the completion of the bulk sample, Avino has achieved a major
milestone in its goal to continue as a low cost silver
producer.
Technical information in this news release has been reviewed and
approved by Jasman Yee, P. Eng, the Company's Qualified Person as
defined by NI 43-101.Assays for the bulk sample program were
performed at SGS Labs in Durango, Mexico, Concentrate shipment
assays were performed by AH Knight, UK and checked at ALS Minerals
in Vancouver, BC.
On Behalf of the Board
David Wolfin, President
This release contains statements that are forward-looking
statements and are subject to various risks and uncertainties
concerning the specific factors disclosed under the heading "Risk
Factors" and elsewhere in the Company's periodic filings with
Canadian securities regulators. Such information contained herein
represents management's best judgment as of the date hereof based
on information currently available. The Company does not assume the
obligation to update any forward-looking statement.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Avino Silver & Gold Mines Ltd. David Wolfin
President 604.682.3701 604.682.3600 (FAX) ir@avino.com
www.avino.com
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